Is it worth stopping contributions to the RRQ after age 65?

If you continue working after age 65, you may choose to either continue or stop contributing to the QPP, and this decision is irrevocable. Continuing contributions gives access to an additional retirement pension that slightly increases your lifetime benefits, but the return is generally modest and only worthwhile if you work several more years, earn a relatively high income, and expect a long retirement. In many cases—especially for part-time or short-term work—stopping contributions is more advantageous, as it increases net income immediately and avoids paying into a benefit that takes a long time to recover.

Basic rule (after age 65)

If you continue working after age 65, you have a choice:

• Continue contributing to the QPP

• Stop contributing (voluntary option)

This choice can be made only once and is irreversible.

Continuing to contribute: when it can be worth it

If you keep contributing, you become eligible for the Additional Retirement Pension (ARP).

Advantages:

• Each year of contributions increases your lifetime pension

• Pension is indexed

• Can be worthwhile if:

  • you work several years after age 65

  • you are in good health

  • you have a relatively high income

Important to know:

• The return is modest

• You must live long enough to recover the contributions paid

Stopping contributions: often the best choice

In many situations, stopping QPP contributions is more advantageous.

Advantages:

• No more QPP deductions from pay → higher net income

• Avoid contributing for an additional pension that is:

  • relatively small

  • recovered slowly

• Makes sense if:

  • you work part-time

  • you expect to work only 1 to 3 more years

  • you prefer to keep or invest your money now

Typical situations (quick decision guide)

Occasional work or only a few years after 65
Stop contributing

Full-time work until age 70 with good income
Worth analyzing, continuing may make sense

Need more cash flow now
Stop contributing

How to stop contributing

You must complete the following form:

• Application to Stop Contributing to the QPP (after age 65)
  Give it to your employer (or keep it for your records if self-employed)

Clear conclusion

In most cases, stopping QPP contributions after age 65 is beneficial, especially if work is limited or temporary.
Continuing to contribute can make sense, but it is not automatic and should be analyzed on a case-by-case basis.

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